will see you right back here on wednesday with another great show. thanks a bunch. the. ♪ lou: good evening, everybody. the presidential election, the balance of power in congress has been decided, but this is certainly not the new beginning president obama had once envisioned. with the country set to hit the so-called fiscal cliff at year's end president obama and congress are seemingly committed to repeating their rhetoric and, perhaps, their mistakes as they ostensibly work toward avoiding the calamity of going over that fiscal clef. house speaker this morning made it clear. he thinks this is the president's moment, and he called upon the president to lead, and he called on the president to find middle ground between a bitterly divided republican house and democratically controlled senate

now, this is an opportunity for the president to lead. >> this is his moment to engage the congress and work toward a solution that can pass both chambers. and earlier this week the president and i had a short conversation. it was cordial. i think we both understand that trying to find a way to avert the fiscal cliff is important for our country. lou: the speaker also noted that when he came to agreements with the president in the past that he has had no problem, as he put it, getting legislation passed in the house. president obama, and his first public appearance since reelection insisted that senate democrats have already done their job. the president declared that tuesday's election was a repudiation of the dysfunctional republican controlled congress end proved that americans expect republicans now to compromise. president obama fell back on one of his most comfortable talking points since he took office,

claiming that the republican-led house is holding up an extension of the bush tax cuts for the middle class in order to protect the so-called rich. >> nobody, not republicans or democrats want taxes to go up for folks making under $250,000 a year. let's not wait. even as we are negotiating a broader deficit reduction package, let's extend the middle-class tax cuts right now. the senate has already passed a bill doing exactly this, so all we need is action from the house i have the pan ready to sign the bill right away. i'm ready to do it. [applause] and. lou: the president said he wants income-tax rates for those making over $250,000 a year to be negotiated next year as part of broader fiscal discussions aimed at reducing long-term deficit. the president defiantly declared today that the debate over how to move forward with this policy

ended with his reelection. >> this was a central question during the election. it was debated over and over again. on tuesday night we found out that the majority of americans agree with my approach. lou: expensive, dirty, and exhausting campaign leading as right back to where we were, and it is important to note, both democrats and republicans signed up for this in order to avoid responsibility for failing to come to an agreement on significant debt reduction during the debt ceiling negotiations last year. we take this up tonight with some of the brightest minds. former reagan political director ed rollins, former special assistant to president george w. bush run christie, a pulitzer prize-winning journalist michael goodwin, former clinton adviser, doug shown among our guests tonight. we are bringing together breaking developments as well at this hour. under resignation of the cia director david patraeus and in

submitting his resignation today to the president he cited his extramarital affair as the reason for his sudden resignation, but we are learning that the director has been under fbi scrutiny for some time. as a result of a separate investigation. we will bring you more as these developments are clear and as we receive them. retired four-star general david patraeus today resigned from the cia, and the implications into the bin does the investigation, the political implications for the obama white house, we will explore here tonight. turning back to the president's states campaign like event today, he did not answer any questions or reveal any specifics about his fiscal vision, if you will, but he did repeat this familiar pronouncement. >> already i have put forward a detailed plan that allows us to make these investments while reducing our deficit by $4 trillion over the next decade

i want to be clear. i am not wed to every detail of my plan. i am open to compromise. i am open to new ideas. i am committed to solving our fiscal challenges. but i refuse to accept any approach that is not balanced in. him. lou: well, will the republican-led party provide any countervailing influence of force against that tax increases proposed by the president? former special assistant to president george w. bush, a pulitzer prize-winning columnist , fox is contributor michael goodwin, a veteran campaign strategist, former reagan political director. election night said to the audience, i believe that this president was smart enough, but he understands he has been given a second opportunity to be the

leader that he seemed kind inclined to be in 2009 as he took the oath of office. what did you think of his demeanor and his response today? >> i think he threw the gallon down to the house republicans who basically are going to put their backs up. if you really want to negotiate you need to sit down, talk to each other. house republicans, the majority, so they feel very empowered. the president obviously deserves whatever credit, the incredible victory. he ran a great campaign. the end of the day the american public, have the american public voted against him and the other half, they voted for two-thirds increases in taxes. so my sense is at this point in time he has the job. he needs to sit down and negotiate. >> i guess the honey my is over. [laughter] i was struck by is the stridency of his demeanor. i thought it was the wrong tone, frankly, to begin. as i said, if you want to

negotiate you have to give the other guy some face-saving ways out of it. to say i'm flexible, i want compromise, but since a wave the pen that wake, it does not measure up. i would say that the issue of the taxes, which seems to be his fetish in this, he will raise tax rates. what the speaker has said is, we are open to closing loopholes. the president does not really what revenue as much as you once rates. and to me that makes him a pure ideologue. the pragmatic way is to get the revenues of the government can function better, not to insist on tax rates. lou: initially accommodating in both tone and word, the speaker now making it clear there won't be an increase in rates, and senate minority leader mitch mcconnell making the same thing abundantly clear. we are right back where we started. >> right back where we started. the american people voted on tuesday night to continue the dysfunction that we have had for the last two years. the president seems to act like

he has been given a mandate, somehow he has been given this great victory. lou: important he did not use that word. >> thankfully, but here is the important thing, and i agree with my colleagues and friends here. there is not a coequal branch of government. the congress has controlled by the house of representatives, republicans, and senate the democrats. mr. obama, even though he thinks as these guys have already said, that he will press for his tax increase on the rich, it's not going to happen. the house was reelected, but a smaller government, keeping government spending in check, and, of course, not raising taxes. if he thinks that house republicans we will roll over, i think he's in for reawakening. lou: one for the country came today when we were stunned by the announcement of david patraeus resignation as cia director. and then he cites in his resignation letter not only an extramarital affair, but he's quoting teddy roosevelt.

remarkable, i thought. >> it is remarkable. i have respect for david patraeus. i don't know the details. he served his country dave -- he sacrificed a great deal. i think it is a tragedy. there's also another story here. lou: that story, because we learned very quickly that he will certainly not the apparently testifying before congress next wednesday in closed-door meetings, three separate investigations. what do you make of it? >> the fact that he has been under investigation which he discussed today by the fbi raises questions about other things he has said and done recently that were kind of lofty, i thought. for example, he apparently gave a briefing to members of congress worry said that the video cost -- the hijacked spontaneous protest and led to the shooting and killing in

benghazi. >> the idea of him being a straight shooter was called into question. >> feeling pressure to conform to the party line. he was under investigation. crazier things that happened. lou: that fbi has had scrutiny as the result of a separate and unrelated investigation there were conducting. this looks like it was baked up and declared ready today. does it not? >> the best day to dump affirmation you don't want in the public is a friday. resignation by the s ca director setting extramarital affair, to me knowing that he is going to congress are not going to congress next wednesday to testify about the benghazi instinet teeseven incident, this

reeks of something far more sinister employee, and they don't want him to testify, for one. they will keep the american people from knowing the truth. lou: there is so much smoke swirling around this administration. the campaign in the election moved back. and the leaders of this government. it is really disturbing. >> it is, and i think what you're going to find is that the republicans are going to continue to pursue the facts. they don't feel any way, shape or form intimidated by this president's reelection. as we both said, it's a separate branch of government. they will do there task and make the case to the american public. lou: we will leave it right there. thank you very much. we appreciate it. thank you. much more on the fiscal cliff,

the irresponsibility with in washington that has led us to extraordinary points and much more on their resignation of cia director david patraeus. for bit 007, we have our own super spy scandal. cia director david patraeus resigns setting an extramarital affair and putting -- quoting does it -- teddy roosevelt in his resignation letter. president obama's reelection reigniting the debate about illegal immigration. what a republican shift on illegal immigration bring hispanic voters under the republican banner? and manhattan institute fellow heather macdonald, our guests next.

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so the republicans need to shift their views on immigration reform to convince hispanics they should join the party. the republican party. manhattan institute fellow will be joining us here in moments. talk about just those issues. first we turn our attention to the markets and tonight's moneyline. consumer confidence moving high. reaching a five-year high this month according to the university of michigan survey. one is a surprise demand temporarily investor concerns about the fiscal cliff and the european union that appears near polling office -- falling off its own glass. president obama moved to the east room and stood before the cameras and microphones and produced a nearly -- well, a banishing, if you will. and 90-point gain in the dow simply vanished. that dow, s&p, nasdaq squeaked out narrow gains.

the dow down 278 points, more than 2% on the week, the worst since the beginning of june. the same for the s&p, down 34 points. the nasdaq down 77 points, losing two and a half percent on the week. this is the fifth straight week of decline in, the longest losing streak in a year-and-a-half and worthy of some note. crude oil prices up almost a dollar. the yield in the ten year treasury closing of the week. republicans facing increasing calls for emigration reforms following the president's reelection, in part, that victory on the part of the president and in the minds of many, due entirely to the support of the hispanic voters. exit polls show 65 percent believe most illegal immigrants working in this country should be offered the chance to apply for legal status. 28 percent say they should be deported. joining me now, manhattan institute fellow, heather

macdonald. a to have you with us. let's start with your judgment as a matter of policy. what do you think is the appropriate way forward in terms of public policy on the issue of illegal immigration? >> well, i would like to move our immigration system toward a skills-based qualification. you come in now because you have a family member already here but because you have skills that the american economy needs and language. with regard to illegal immigration, i think the rule of law remains the best way of making sure that people don't come into the country illegally. the risk of an amnesty, and we are talking of an immigration reform, that is basically all the we are talking about, unfortunately, is amnesty. every amnesty, weather in europe or the united states, has had the effect of attracting more people into the country

illegally in the hope of a future amnesty. lou: years ago i started talking about a rational, effective, humane immigration policy that would take into account all of the concerns about displacement of those who were in this country illegally, due process, make a determination about how work permits and legal status was conferred. that is not enough. the activist groups in this country insist upon one thing, and it is a remarkable demand in my eyes that they insist upon amnesty, and this president is insisting upon amnesty. what is your reaction? >> well, what i worry about most , immigration advocates is not amnesty, but the incredibly successful campaign to stigmatize any immigration enforcement whatsoever. when you have opposition across the country to a program called secure communities which says to

me if you have committed a crime and you entered jail, the jail authorities should notify the federal immigration authority of your presence. that now is viewed as unfair to illegal aliens, so we can't even penalize criminals. that means that even if we say, okay, we are going to give amnesty to everybody here, and from this to afford we will start enforcing laws, we won't. lou: political republicans right down unworn and the tempo and the tone of the conversation is surprising, looking at the numbers and saying, despite the faction that they did not even turn of the members they had become the this was the lowest turnout in almost 20 years. it is -- it is striking that now they're saying that you have to create diversity. and we will take up this issue later in the broadcast.

your reaction? gumi, should they do that? is there a panacea in that change in attitude on the part of the republican party? >> first of all, diversity and quotas are ridiculous. we should put the best person for all ways. race, ethnicity, gender should play no role. if republicans believe an amnesty they should enact amnesty, but the hope that this is going to deliver significant numbers of current democrat hispanics to the republican party, i think is iu because the main reason that hispanics support the democratic party is economic policies, not immigration. you have 62% to of likely hispanic voters in september poll by fox saying they supported obamacare. this despite the catholic church is opposition to contraception mandate. so much for the social values. they support prop 30 in california to raise taxes on

upper income californians and to raise the sales tax. why? because hispanics remain at the lower level of the economic planner, and they use government welfare programs at a very high rate. lou: i welcome this discussion, now being started by the republicans on reforming our immigration laws someone. but i hope that there is not a rush to judgment that somehow moves across this vast sea of facts and realities that have been avoided by both political parties. the american people really need to understand what is happening. the hispanic community needs and understand what is happening. the idea that you are broaching here that this country should be selecting those it brings into the united states based on their skills, talents, that is going to be a tough sell minette land bridges there down south. >> absolutely, and that is why

amnesty is very risky because it means that stopping the flow of illegal aliens from that land bridge is going to be even more difficult. lou: if there is to be an amnesty, it will be the third in the last 26 years. it will be something to watch. >> and we will have a fourth. i can guarantee it. lou: all right. thank you. come back. we will continue this discussion . up next, more than a week after the deadly attack, the pentagon finally gives this country of version of what happened on september 11th, timeline. details next. power still al for thousands of victims of hurricane sandy. tempers are growing short. indeed, they are understandably short. bell live report for you on the recovery efforts on one island. we are joined in just moments.

the. ♪ lou: president obama today announcing he plans to visit victims of hurricane center in new york next week. this, as patience is wearing thin in the most hard-hit areas in new jersey and new york where more than half a million homes and businesses remain still without power. eleven days after the hurricane struck. fox news senior correspondent rick leventhal has our report. oceanside, new york. >> thirty years gone. just like that. >> reporter: trash trucks finally reached the town of oceanside on new york's long island for the first time since sandy 11 days ago. residents are still in the dark. >> no response from anybody, sanitation.

should he turned the electric off, but the electric on. no direction. >> reporter: across the region hundreds of thousands of customers are still without power, heat, or answers. one long island utility company said it was running out of supplies, which outraged new york's governor. >> you look at what a utility company does and it basically comes down to wire and polls and crews and trucks. these are things you would want to have. how can you run out of polls? >> reporter: in new york city gas rationing began. cars with even numbered plates philip but even numbered days. cars without number plates pull upon not numbers days in an effort to ease long lines and short tempers. >> i think that makes sense. it will ease up. you will have this long line. people trying to, you know, fight for gas. >> reporter: housing is another growing concern. fema trying to provide temporary shelter for 95,000 people. >> you know, you wake up and you're okay and in the second it hits you all this happened and you don't have a place of your

own any more. it's pretty devastating. and you think it's never going to be you and then it is. >> reporter: one thing there seems to be plenty of, generosity. a train filled with supplies is on its way from louisiana to the jersey tonight backed by a community that knows something about weather in mother nature's worst. >> of the images of new jersey, we are making them feel, everyone wanted to do something. they started organizing and effort on facebook. >> reporter: the donations are appreciated, but there won't turn the lights back on. there are still more than 155,000 customers on long island alone without power tonight. folks hearsay they were told they should have electricity by the middle of next week. in the meantime, they fill these large construction dumpsters with pretty much everything that was on the first floors and in their business because the water was just i here. all furniture and possessions, even the flooring in a chirac has to be ripped out so that homes can be dried and hopefully saved him. lou: thank you.

i wanted just say, you have done an outstanding job on this story. on this story, i'm sure you have been watching him. eleven days. are you sensing that there is real progress being made here? the risk of disease, the kind of devastation that you are standing in the middle of, our people coping? >> well, people losing their patience, especially the folks in these hardest hit areas that are not getting power, heat, and in many cases and not getting answers are even direction from local officials. there was a meeting in the school year earlier today where people are screaming and county officials. the school is still closed and will be for a month or more. after that meeting for the first time in 11 days trash trucks showed up to start cleaning the debris, so there were happy about that. still in the dark, still don't have heat, still have to find a place to live. very little hope. like i said, they may not get power year until sometime next week. lou: the local officials, fema

with all of, you know, the signs up in various places. how present an effective are they? >> will. >> reporter: well, they have been swamped with requests with applications. 44,000 people in nassau county alone where we are have filed. the largest number in new york state and over 100 to 2000 the new york alone has filed for fema assistance. we heard a lot about that. we have seen a lot of people in assistance centers, but we have not seen or heard from people who said they have got to check said. that may be happening, but right now people are desperately trying to clear out their homes, get the power back on, and get their lives back and ordered. lou: thank you very much. we appreciate it? thank you for your terrific reporting, as always. rick leventhal. >> reporter: thank you, live. lou: our fox news senior correspondent in new jersey today. governor christie called hurricane sandy, our katrina. touring the jersey shore, and as residents of long beach island

will be able to return tomorrow morning. the president obama and the speaker wasting no time in repeating themselves and their mistakes. >> this is an opportunity for the president to lead. this is his moment to engage the congress and work toward a solution that can pass both chambers. >> on tuesday night we found out that the majority of americans agree with my approach, and that includes democrats, independents, and a lot of republicans across the country. lou: with 52 days until the biggest tax hikes in history, can these two-man help find a solution? the "a-team" with the answers. the post-election fallout. obamacare, the law of the land. business leaders laying off workers. the rise of radical islam in the middle east, i cry for the return of sharia law. what it means for them and for us. the author of the extraordinary book.

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the. ♪ lou: general david patraeus shocked the country today, announcing his resigned as director of the cia because he had an extramarital affair. that affair, with his biographer , as it is alleged, was revealed during the course of an fbi investigation. the fbi was apparently concerned for some time that patraeus may have been the victim of some sort of security breach, although there is no evidence to back up any of those concerns. in a statement to cia staffers today patraeus said he showed extremely poor judgment by engaging in what he called unacceptable behavior. general patraeus will no longer be testifying before a closed-door hearings in both the house and the senate on the benghazi attack. those hearings beginning next week. another cia witness will appear

instead, although patraeus can still be subpoenaed to appear. meanwhile, a new defense department timeline shows the first u.s. military unit arrived in libya more than 14 hours after the attack on our consulate was over. too late to help our ambassador and three other americans killed in the september 11th attack. my guest now says the administration is in danger in the life and liberty of americans, including those killed in an gauzy by ignoring sharia law. joining me now, andrew boston, the author of the new book, sharia versus freedom, the legacy of islamic totalitarianism. it is great to have you with us. we appreciate it. let's start with, first, the idea that sharia law, a lot of people this message saying it is a cultural aspect of the islamic life that poses no threat to america. your thoughts. >> sharia is really foundational

in islamic societies. it is derived from the text of islam, the traditions of mohammad demanded has many ritual aspects that might be similar to other religions demand but it is also an entire political system. and here is where it runs afoul of modern human rights concepts like our bill of rights, the universal declaration of human rights. it includes a timeless war doctrine. it also rejects basic human freedoms like freedom of conscience, freedom of speech, and it imposes discriminatory regulation, legal regulations against non muslim minorities and women. also includes dehumanizing punishments are well we would consider dehumanizing punishments like flashing for our consumption, stoning to death for adultery, and mutilating punishment. lou: and there is no way in which american culture can

accommodate each area within a multi-cultural society, part of which would be the muslims? >> absolutely not, certainly not the overt liberty crushing dehumanizing aspects of sharia. unfortunately, it is an integrated whole. it is proven historically very, very difficult for muslims dead desacralized sherry, sacralize it and to eliminate the political liberty crushing aspects from the simple religious ritual. lou: so the arabs bring in that context of our recent article euro u.s. policymakers it penalized by the murder of libyan ambassadors christopher stephens, sacrificed u.s. laws -- lives, our nation's all by cynically ignoring sharia doctrines and practices. how should the united states appear responding? as you assert, the legacy of islamic totalitarianism, you are saying it is an arab spring that ends with a totalitarian winter.

>> we have choices in the middle east. we have a secular leading despot's to we chose to undermine and replace, mubarak, even duffy, and yet what is the replacement? the replacement, we knew from the get go, and we actually supported the muslim brotherhood yacht this who have a sharia supremacist outlook and were still, the late ambassador stevens unfortunately chose to go into the hotbed of libya which dates back to the worse. and promote overt people who we know from the pentagon report in august were directly aligned with terrorists. lou: we thank you for being with us. we will continue this conversation. the book is sharia versus freedom, the legacy of islamic taught arianism. thank you so much for being here. up next, former arkansas governor mike huckabee joins us, retired u.s. pacific fleet commander admirable -- admiral

james lot -- james lyons says it is time for this a ministration to be straight on what happened in benghazi. global economist nathan sheik on the fiscal clef. up next, president obama adding to an unemployment roll by being reelected. that is what some say. we will find out next. at's next?

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history. not so fast, newsweek. there are some people who might fit in that category and get a little sensitive. we do a little research. for the rest of the liberal media, you're pretty screwed up as well on the issue of the diversity of the republican party, and here are some facts. according to an independent observer and the pure research paul from earlier this year, the republican party is made up of these folks come up 32 percent white, 5 percent black, 11 percent hispanic. identifying themselves as republicans. democrats 26 percent white, 69 percent black and 32% hispanics. there seems to be some over representation, don't you think? but the most popular affiliation, at least among whites and hispanics is independent. 38 percent are white, 22 percent black, and get ready for this, 46 percent hispanic. hispanics identify themselves 46% as independent.

how about that. when it comes to aids, pretty evenly split between the parties, among the generation born before 1945, 34 percent identify as republican, 34 percent as democrats. get that, newsweek? 27 percent independent. baby boomers have just about the same amount of republicans and democrats. 34 percent, 27 percent independent, and among generation x24 percent republican, 29 percent democrat, and here we go again, most self identify as independent, 42%. among the millenniums, along under the age of 31, 18 percent republican, 31 percent democrat, 35 percent independent. notice the trend? elections have consequences, and we are getting a sense of the negative today. 200 companies announcing closings or layoffs says the president won his second term. you can see them strolling by as i say this. i'm waiting for this growing by.

there they go. scrolling by. not all the companies give a precise number of how many people they're laying off, but at least 7900 workers learned they are losing jobs this week. up next, house speaker baena defers to the president on the fiscal cliff saying it is it's time to leave. the "a-team" will have a few thoughts.

♪ lou: joining me now, the "a-team," former special assistant o president george w. bush, former chairman of the denver county republican party. ray to have you with us. former clinton adviser. let's start with you. are you always -- we're always

delighted to see you, especially when you are licking your wounds after adjusting the dickens be out of you tuesday. i mean, that was a thorough thrashing. >> thank you. yes. i think while the american vote was very close, the electoral code was something. i think the republican party nominees to have a lot of gays in having this debt was it -- the establishment come out with these candidates. politics is about addition, not subtraction. >> is rick santorum the answer? lou: rick santorum suddenly has a beard. where has he been? i mean, he has appeared. ron paul suddenly showing up. this looks like the missing those from the romney campaign. it looks like they were ron paul voters, rick santorum voters, and a few others. now they're back. >> certainly the enthusiasm that the republicans thought they could count on did not actually

materialized. whether that is because there are not excited about the candid it's, nothing anyone would have been more excited. certainly a lot of people would be a lot less excited. lou: i was as suggesting break as a substitute. i was just saying, you have not heard from them for months, and now he is back on television. the same thing with ron paul. i mean, what in the world is going on? >> proof positive that the republicans not only don't have a defense, they have nothing. lou: really? >> overstating. lou: you're also accusing me. how much of a bench to they need if you have a nominee. >> that did not have much of want. lou: they had one guy on the bench, and he was one heck of a queen of kidder. >> beat somebody with nobody. lou: bill clinton. bill clinton and chris christie. what does obama have? we will be back with "a-team" in just one second.

they will ponder that question. we will look for other answers next. stay with us. ♪ i'm a conservative investor.

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lou: back with the a-team, quickly, a rx a to the president's comments, his demeanor in the east room of the white house addressing the fiscal cliff. >> i was disturbed by it. he dismissed 50 million people

that disagreed with the position he may be taking. what he said was, well, now we know a majority believes in what i'm proposing. that completely discounts the half of the adults in america that did not take part in the election at all. i mean, there were 100 million people, and there's 220 million adults. lou: some argue they were the ones exercising their judgment, only facetious, i assure you. >> the speech was nowhere in eve in the east room today. i was stunned by the fact that he took a very strident partisan political tone, the first opportunity to address the american people after the election. it sets the wrong tone, the dividing line, and we're back to more dysfunction. lou: i made the mistake i thought there was a possibility he would be smart enough to seize the opportunity to be a leader in this term. >> sadly, as of today, we have

to say both of us, and i felt the same way, we're not right because there were indications tuesday nights, and i think yesterday, that he was going to be accommodating. he says he wants to compromise, but he drew a line in the sand, sad. lou: general pee -- petraeus, and what do you think of the resignation? >> we don't know the details. lou: had an affair and decided to resign. strange stuff. >> it's not something they expected from him, but this is a very compromising position, and that under the circumstances, he did the right thing to choose to resign. lou: roy? >> i think that there's something more bind this to have this resignation on a friday when most people are not looking at major stories. i think the administration's trying to bury something.

>> i want him under oath to tell us what happened in libya and what happened in the very sad affair. lou: all right, thank you very much. >> thank you. lou: mary, thank you. well, it is time now for your comments. turning to one who said, lou, obama knows nothing about the center, but off center into dangerous territory. ed says it's amazing how many people don't know about libya as well as fast and furious. thanks for keeping the torch alive, lou. the promised, most transparent administration in history is actually the most secretive administration in history. anthony wrote to say, lou, thank you for your thoughtful and intelligent coverage during the election season. keep fighting. thank you, all, for your comments, keep them coming at lou jdobbs.com for links to to be, twitter, e-mail us, we love hearing from you. that's all for us tonight. we wish you a very pleasant weekend.